The document has been released for public consultation.
Under the proposal, foreign legal entities operating in the country's crypto-asset market without a license could face fines of up to 25,000 base calculating amounts (BCAs), equivalent to about UZS 10.3 billion at the current rate. Once the BCA increases on September 1, the maximum fine will rise to UZS 11 billion.
The draft also proposes fines of 15,000 BCUs for violations related to the storage and processing of personal data, as well as failures to comply with anti-money laundering legislation. The penalty amounts to approximately UZS 6.18 billion at the current BCA rate and will increase to UZS 6.6 billion after September 1.
Violations of advertising rules governing crypto-asset services would be punishable by fines of 10,000 BCAs, or around UZS 4.12 billion. Following the BCA increase, the amount would rise to UZS 4.4 billion.
According to the draft regulation, decisions on imposing fines would be made by the NAPP director or the official acting in that capacity, based on the recommendation of a special working commission.
When determining the amount of a penalty, the agency would take into account factors including the duration and systematic nature of the violation, its impact on participants in crypto-asset transactions, the reasons behind the breach, the effectiveness of previously imposed sanctions, and any corrective measures taken voluntarily by the company.
The proposal stipulates that fines may be imposed no later than six months after a violation is discovered and no later than three years after it was committed.
Foreign companies must be notified of the commission's hearing at least five working days in advance and will have the right to send a representative to participate in the proceedings.
If a fine is imposed, the agency will notify the company within three working days, specifying the amount, payment deadline and bank details. Companies will have 15 days to pay voluntarily. If payment is not made within that period, the agency will seek enforcement through the courts.
The draft also provides foreign companies with the right to challenge a penalty before the agency's appeals council or in court. Enforcement of the fine would be suspended while the appeal is under review.
